Elon Musk owns all of Twitter, which he purchased for $44 billion. Elon Musk has finally purchased a 100% stake in Twitter for approximately $44 billion, or $54.20 per share, in cash. It is now official. Elon Musk has finally purchased a 100% stake in Twitter for approximately $44 billion, or $54.20 per share cash. For weeks, the microblogging site has been weighing elon musk twitter offer. Musk previously stated that Twitter had “amazing potential,” which he wanted to realize.
- Elon Musk has finally purchased a 100% interest in Twitter.
- Musk purchased a 9.2 percent interest in Twitter earlier this month.
- Musk feels Twitter has “amazing potential,” which he wishes to realize.
In response to the buyout, Twitter CEO Parag Agrawal stated, “Twitter serves a purpose and impacts the entire world. We are extremely proud of our teams and inspired by the job that has never been more critical.”
“The Twitter Board went through a long and thorough process to evaluate Elon’s proposal, with a deliberate focus on value, certainty, and funding. The proposed deal will result in a significant cash premium, and we believe it is the best option for Twitter’s stockholders. “Twitter’s Independent Board Chair, Bret Taylor, made the following observation.
Elon Musk purchased a 9.2 percent interest in Twitter earlier this month. It put him the company’s second-largest shareholder after Vanguard, which owns 10.3 percent of the stock. Later, Twitter CEO Parag Agrawal invited Musk to join the company’s board of directors, but the billionaire declined. Elon Musk and Twitter have been at odds since then.
Changes that Elon Musk is anticipated to make
It all started last month when Elon Musk asked Twitter followers if he should develop a new social media platform since Twitter does not “adhere to the right to free expression.” Most individuals advised him to purchase Twitter instead. The Tesla CEO also complained that Twitter stifles free speech, which is thought to be the first issue he would address as Twitter’s owner.
In recent years, the billionaire has questioned Twitter’s censorship of some voices, particularly former US President Donald Trump. Indeed, the site accused Elon Musk of breaking Twitter’s terms and conditions by broadcasting coronavirus-related material. Since Elon Musk has frequently stated that Twitter does not adhere to “free speech,” one of the first adjustments could be observed in content filtering.
Elon Musk recently stated on Twitter, “A functioning democracy requires free expression. Do you believe Twitter strictly follows this principle?” Approximately 70% of the 2 million responders said NO.
Second, Musk, now owning Twitter, could see the edit button appear very soon. However, Twitter has previously stated that it is testing the edit feature. Earlier this month, the business noted that the edit option would be tested with Twitter Blue subscribers first, followed by a stable release. Musk could undoubtedly aid in the early introduction of the edit button.
Another area in which Elon Musk is expected to work is the removal of spam accounts or spambots, which he describes as Twitter’s “most unpleasant thing.” In recent years, scammers have used phony accounts to imitate Musk to induce users to give away cryptocurrency. Elon Musk’s statement was among the high-profile Twitter accounts hacked in 2020 to promote a bitcoin fraud.
The Tesla CEO stated that rather than correcting crypto spambots, Twitter invested effort in profile images highlighting nonfungible currencies and assets validated on a blockchain. “Twitter is wasting engineering resources on this nonsense while crypto scammers throw a spambot block party in every thread!” he said.
What is Elon Musk purchasing?
As a social network, Twitter is a robust platform influencing many people in business, politics, and society. However, it is an occasionally profitable corporation with an uncertain cash flow.
Elon Musk was probably not drawn to Twitter because of its financial prospects.
“I don’t care about the economics at all,” he stated immediately after presenting his offer at a press conference. In the statement announcing the board’s acceptance of Mr. Musk’s bid, he emphasized free speech, open-source algorithms, and other nonfinancial aspects of Twitter’s operations that he said have “tremendous potential.”
On Thursday, Twitter will publish its first-quarter earnings. According to FactSet, analysts estimate the company will earn about $40 million on $1.2 billion in revenue. Twitter produced more than $140 million in profit in the same period last year.
Perhaps more importantly, as it prepares to take on billions in debt obtained by Elon Musk to finance his acquisition, analysts anticipate that Twitter will have generated $230 million in free cash flow in the first quarter, slightly more than last year.
4 Ways Elon Musk Could Change Twitter
Elon Musk can be challenging to understand at times, and his politics are opaque, making it tough to predict what the billionaire might do if he successfully acquired Twitter. But, in the weeks and months leading up to Monday’s agreement, Mr. Musk has dropped more indications about what he would alter about Twitter — in interviews, regulatory filings, and, of course, on his Twitter account.
Mr. Musk might focus on the following issues:
Moderators of content and free speech Elon Musk has regularly expressed concern that Twitter’s content moderators go too far and intervene too much on the platform, which he sees as the “de facto town square” of the internet.
“Free speech is the backbone of a healthy democracy, and Twitter is the digital town square where things crucial to the future of humanity are debated,” Elon Musk said in a statement announcing the partnership.
“I also wish to improve Twitter by adding new features, opening up the algorithms to boost trust, combating spam bots, and authenticating all people,” he continued. “Twitter has enormous potential, and I look forward to working with the company and the user community to realize it.”
Elon Musk said in a tweet on Monday, before the revelation of his deal with Twitter, that he hoped even his “worst detractors” would continue to use the network “since that is what free expression means.”
The Trump issue:
Elon Musk has not publicly stated how he would handle former President Donald Trump’s suspended Twitter account. However, his words on free speech have fueled speculation that Twitter, which he owns, may reinstate Mr. Trump, who was banned from the network last year. Following the melee at the Capitol on Jan. 6, Twitter stated that Mr. Trump had violated its regulations by inciting violence among his followers. Mr. Trump was also banned from Facebook for the same reason.
The former president, known for tweets that criticized opponents and occasionally disclosed policy changes, is also attempting to launch his social networking site. However, truth Social, his start-up, has failed to recruit users, and the situation may worsen now that Elon Musk has suggested modifying Twitter’s content moderation policies. In a recent interview, Mr. Trump said he would likely not return to Twitter.
The program. At this month’s TED conference, he commented on his plans to make the company’s algorithm an open-source model, allowing users to access the code that determines how specific postings appear in their timelines.
He believes the open-source strategy is preferable to “having tweets inexplicably boosted and demoted with no insight into what’s going on.”
Elon Musk mentioned the platform’s partisanship and recently tweeted that any social media platform’s policies “are fine if the most extreme 10% on left and right are equally unhappy.”
Who and how uses the platform. Mr. Musk expressed anxiety about Twitter’s relevance before attempting to buy it this month.
Elon Musk responded to a list of the ten most followed Twitter accounts, which included former President Barack Obama and pop sensations Justin Bieber and Katy Perry, writing, “Most of these ‘top’ accounts tweet rarely and post very little material.” “Is Twitter dead?”
In a recent tweet, Tesla CEO Elon Musk said he would “fight the spam bots or die trying!”
what was Musk’s plans for Twitter funding?
Since Elon Musk announced he’s willing to buy Twitter, Wall Street has been wondering how he would fund such a transaction. Mr. Musk is the world’s wealthiest individual, with a fortune that exceeds $200 billion. However, the majority of his wealth is invested in Tesla stock.
According to securities filings, Mr. Musk is paying $13 billion in bank loans and another $12.5 billion in loans against his Tesla stock. In addition, he has pledged an additional $21 billion cash to purchase the remaining Twitter ownership.
On Monday, Elon Musk did not answer one of the most pressing outstanding questions: the source of the $21 billion. One of the best options is to sell Tesla stock, trading at $978 per share on Monday afternoon. He also controls several private enterprises, including The Boring Company, which was recently valued at over $6 billion, and SpaceX, which was valued at $100 billion last year. He may create cash by selling ownership in those enterprises.
Finally, with Elon Musk as the new owner, we may see a more open-source Twitter. To some extent, it is already an open-source platform because some of its technologies are publicly available. However, twitter elon musk stated at the recent TED conference that Twitter should be more open source since “there is no type of behind-the-scenes manipulation, either algorithmically or manually.”